The merger deal "represents a very promising opportunity to become a leader in on-line insurance sales through the banking, credit union, brokerage, and other financial institution channels," said Harvey Sax, chief executive officer of HomeCom.

"We have an integrated offering that will change the way insurance is sold," Mr. Sax said.

The deal, subject to regulatory conditions and approval by HomeCom's shareholders, is expected to be completed within three months.